Investors around the world are quite familiar with Ripple and the opportunities it can present. Ripple is the name for both a virtual currency like Bitcoin as well as an open payment network that allows back and forth transfer of currency. The goal of Ripple XRP was to initially provide people with a new payment system that simplifies currency transfers. Unlike PayPal, Skrill, and banks, Ripple doesn’t ask fees for currency exchanges and there are also no processing delays.
OpenCoin, the company behind Ripple said in their statement that the main aspect of any financial institution is to keep money flowing freely. And because of transfer delays and the fees that some companies and websites ask are so high it interrupts the money flow completely, because of the restricted access due to not paying the charges.
Cross Border Payment Solutions
The idea behind Ripple was to develop a cryptocurrency transaction method that works with the same effectiveness as modern day internet and networking. Ripple is taking the same decentralized digital currency approach that Bitcoin uses and just improving it.
The main problem that we all face today is that when it comes to currency transactions, transfer delays can be expected. For the average person to transfer money from a PayPal account to a bank account can take up to a week. This means that for close to seven days the money is unusable. Ripple wants to eliminate those delay problems by building on the current cryptocurrency transaction technology that are already in play.
David Schwartz, The chief cryptographer of Ripple explains it like this, “Payment systems today are where the email was in the early ‘80s. Every provider built their own system for their customers and if people used different systems they couldn’t easily interact with each other. Ripple is designed to connect different payment systems together.”
Investors Love XRP
So why is Ripple turning into a go-to for investors? The answer is that Ripple is transitioning into a “bridge currency” when it comes to trading different currencies. Ripple also shares similarities with Bitcoin, the current top cryptocurrency in the market. Just as Bitcoin has a certain amount of tokens available, so does Ripple. Originally the company behind Ripple had 100 billion units (XRP) created. This is where the term “ripple” comes in.
88 billion of those XRP units went to Ripple Labs for research and further distribution. 55 of that 88 billion XRP units went to the users of the Ripple network to grow the Ripple network even more by distributing them to different projects. This, however, is the only method to obtain Ripple.
Ripple can only be gained by buying the currency from various exchanges as the method of mining is eliminated. Where Bitcoin can be mined, Ripple can only be bought. Because of this reason investors believe that the value of Ripple will increase enormously in the next coming months.
Since Ripple shows such progress in the financial world, and because it’s still quite new, a lot of investors are looking to invest in Ripple rather than Bitcoin. They say since the price of Bitcoin is so high, and now Ripple is introduced which is doing what no other cryptocurrency is able to do, they would rather invest in Ripple and go long. It’s also extremely important that one should remember that the majority of the Ripple units are still owned by the company, making XRP units very scarce.
Since most of the Ripple units belong to the company, and that it’s impossible to mine Ripple units (XRP, coins), the cryptocurrency community is not all behind the development of Ripple. But in the investor’s community, Ripple is the main focus as even one of the top companies in the world, Google is investing in Ripple. The faster transactions and safe payment processing are what drew in Google’s attention.
Investing in Ripple is without a doubt a newly presented opportunity. Ripple transactions are also extremely more secure than other cryptocurrency transactions as Ripple is more controlled. So it won’t be a surprise if we see Ripple making its stand in the markets in the near future.